Morrisons also expects a rise on food prices as rising grain and oil prices feed through. Wheat prices jumped 60pc this eyar after fires in Russia and floods in Pakistan led to poor harvests.

Dalton Philips, the new chief executive, said the group would begin a trial of a new convenience format in the first half of next year and said it was "currently investigating the opportunities for Morrisons in the internet grocery channel".

"Morrisons past success has been built on being different, in the offer we bring to customers, and this will continue in any new areas for business development," he said.

The grocer also plans to invest further in food production.

Morrisons said it was confident of meeting profit expectations for the year.